Marriott International Sued for New York Breach of Contract

Posted on Jan 01, 2016

Marriott International, Inc., is facing a breach of contract lawsuit in New York state court. Eden Roc, LLP, is suing the company. The lawsuit pertains to the $200 million renovation of the Eden Roc Renaissance Hotel in Miami Beach, Florida.

In its lawsuit, Eden Roc alleges that Marriott induced the company into spending more than $200 million to renovate the Eden Roc Renaissance Hotel. As part of the renovations, a new guest tower, a spa, meeting room, banquet room, and restaurant were all added to the hotel. Eden Roc asserts that after these renovations were completed, Marriott developed two new boutique hotels that are direct competitors of the Eden Roc Renaissance.

Eden Roc further alleges that Marriott grossly mismanaged the hotel and implemented a “fatally flawed strategy.” This strategy caused approximately 80 percent of transient room nights to be sold at a discount over the past three years. A transient room is one booked by an individual guest, rather than by a group of guests.

As a result, Eden Roc LLP is asking for more than $16 million in compensatory damages. It is also seeking a declaration that Eden Roc can terminate its agreement with Marriott that governs the operation of the hotel.

Marriott International, Inc., is based in Bethesda, Maryland. The lawsuit filed by Eden Roc was initiated in New York Supreme Court on March 2. The case is titled Eden Roc LLLP v. Marriott International, 650524/2012.